Compilation of the Social Security Laws

Sec. 305. [42 U.S.C. 505](a) The Secretary of
Labor may enter into agreements, with up to 10 States that submit
an application described in subsection (b), for the purpose of allowing
such States to conduct demonstration projects to test and evaluate
measures designed—

(1) to expedite the
reemployment of individuals who have established a benefit year and
are otherwise eligible to claim unemployment compensation under the
State law of such State; or

(2) to improve the
effectiveness of a State in carrying out its State law with respect
to reemployment.

(b) The Governor of
any State desiring to conduct a demonstration project under this section
shall submit an application to the Secretary of Labor. Any such application
shall include—

(1) a general description
of the proposed demonstration project, including the authority (under
the laws of the State) for the measures to be tested, as well as the
period of time during which such demonstration project would be conducted;

(2) if a waiver under
subsection (c) is requested, a statement describing the specific aspects
of the project to which . the waiver would apply and the reasons why
such waiver is needed;

(3) a description of
the goals and the expected programmatic outcomes of the demonstration
project, including how the project would contribute to the objective
described in subsection (a)(1), subsection (a)(2), or both;

(4) assurances (accompanied
by supporting analysis) that the demonstration project would operate
for a period of at least 1 calendar year and not result in any increased
net costs to the State’s account in the Unemployment Trust Fund;

(A) will conduct
an impact evaluation, using a methodology appropriate to determine
the effects of the demonstration project, including on individual
skill levels, earnings, and employment retention; and

(B) will determine
the extent to which the goals and outcomes described in paragraph
(3) were achieved;

(6) assurances that
the State will provide any reports relating to the demonstration project,
after its approval, as the Secretary of Labor may require; and

(7) assurances that
employment meets the State’s suitable work requirement and the
requirements of section 3304(a)(5) of the Internal Revenue Code of
1986[33].

(c) The Secretary of
Labor may waive any of the requirements of section 3304(a)(4) of the
Internal Revenue Code of 1986[34] or of paragraph (1)
or (5) of section 303(a), to the extent and for the period the Secretary of Labor considers
necessary to enable the State to carry out a demonstration project
under this section.

(e) Activities that
may be pursued under a demonstration project under this section are
limited to—

(1) subsidies for employer-provided
training, such as wage subsidies; and

(2) direct disbursements
to employers who hire individuals receiving unemployment compensation,
not to exceed the weekly benefit amount for each such individual,
to pay part of the cost of wages that exceed the unemployed individual’s
prior benefit level.

(f) The Secretary of
Labor shall, in the case of any State for which an application is
submitted under subsection (b)—

(1) notify the State
as to whether such application has been approved or denied within
30 days after receipt of a complete application; and

(2) provide public
notice of the decision within 10 days after providing notification
to the State in accordance with paragraph (1).

Public notice under paragraph (2) may be provided through the
Internet or other appropriate means. Any application under this section
that has not been denied within the 30-day period described in paragraph
(1) shall be deemed approved, and public notice of any approval under
this sentence shall be provided within 10 days thereafter.

(g) The Secretary of
Labor may terminate a demonstration project under this section if
the Secretary determines that the State has violated the substantive
terms or conditions of the project.

(h) Funding certified
under section 302(a) may be used for an approved demonstration project.

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